Fed to launch ICBA-advocated PPP facility
The Federal Reserve said it will launch an ICBA-advocated facility to provide term financing backed by loans originated under the Small Business Administration's Paycheck Protection Program.
The announcement follows this weekend's ICBA call for a secondary market facility for the Fed to purchase program loans from originating institutions. In its Saturday night letter responding to community bank problems accessing the PPP, ICBA also called on policymakers to enhance the overburdened SBA systems, increase program funds, and dedicate funds to community banks.
Meanwhile, ICBA continues calling on policymakers to immediately launch its PPP portal for non-SBA lenders, which have had many problems accessing the new program. The SBA on Friday night released its Lender Agreement, an application for non-SBA-certified lenders to apply to enter the PPP system and input borrower applications.
The SBA continues encouraging lenders who need assistance to call its Lender Customer Service Line at 833-572-0502, though community bankers who have called that number are reporting mixed results on the agency's assistance. PPP resources are available on the Treasury and SBA websites.
ICBA continues encouraging community bankers to weigh in on the launch of the program by completing a new survey on PPP access and processing. ICBA President and CEO Rebeca Romero Rainey said in a Main Street Matters post Friday night that one community bank left out is one too many.